Real estate market (Richmond, Glen Allen: days on market, foreclosure, renting)

[sean&diane]

Just wanted to get opinions on which way the market is headed in the Richmond area. Is the amount of activity in the market increasing/decreasing. What is happening with prices. Where do you think it is heading.

Thanks

[sls76]

I wish I knew. We're renting and considering buying. The Richmond area has some good things going for it--a relatively low foreclosure rate (although it's increasing) and lower unemployment than the national average. This market was never a bubble market like FL or NV, but prices did appreciate much faster than inflation from around 2001 or 2002 through 2006. We're looking in the $400-$500k range in Glen Allen and prices are down 20% or more since 2006. The market is saturated at the high end. I have seen a bunch of homes go under contract in our neighborhood recently--I think low interest rates are making some people jump in. I'm guessing prices will be somewhat lower next year, but at some point the government will have to stop manipulating mortgage rates and inflation will pick up because of the stimulus bill, etc. so who knows where mortgage rates will be next year.

[PickPatrick]

I agree with sls -- who knows the future. For now, interest rates are low, inventory is solid and buyers are jumping in - albeit one toe at a time. Richmond has indeed been fortunate ti miss the brunt of teh housing market. I see prices stabilizing and days on market starting to creep down.